Minimum Car Insurance Requirements in New Jersey
New Jersey auto insurance coverage options are different from other states. New Jersey drivers can choose between a basic policy and a standard policy, both of which are available from many different insurance companies. Here’s how they’re different[1]:
The basic policy doesn’t include bodily injury liability, but you can add up to $10,000 in coverage per accident. It includes $5,000 per accident for property damage liability and $15,000 per person, per accident, in personal injury protection (PIP), or up to $250,000 in PIP for certain injuries like brain and spine injuries and disfigurement.
The standard policy includes $15,000–$250,000 in bodily injury coverage per person and $30,000–$500,000 per accident, $5,000–$100,000 or more in property damage liability, and $15,000–$250,000 in personal injury protection. PIP, which pays for 80 percent of medical treatment after an automobile accident, is required because New Jersey is a no-fault state.
Why is car insurance required in New Jersey?
Auto insurance protects drivers from financial liability in the event of an accident. Depending on a policy’s specific coverage limitations, car insurance may cover everything from vehicle damage to medical bills.
Bodily Injury Liability
Bodily injury liability is part of your liability car insurance coverage. If you cause an accident, this coverage will help cover the other party’s medical expenses. This type of coverage will not cover your own medical expenses for injuries sustained in a car accident you caused. Bodily injury liability coverage is not required in New Jersey, but it’s highly encouraged.
Property Damage Liability
Property damage liability is the other half of your liability car insurance. It covers repair costs and damage expenses to the other cars involved in an accident you caused. This coverage does not cover damage to your own car in an accident you were at fault for. Property damage liability coverage is required in New Jersey.
Personal Injury Protection
Personal injury protection, also known as PIP, covers medical bills, lost wages, and replacement services for you and other members of your household if you’re injured in a car accident. PIP provides coverage regardless of who is at fault for an accident. Personal injury protection is required in New Jersey.